Sartorius Stedim Biotech S.A. | Investor Relations
A Trusted Partner for the Biopharmaceutical Industry and Laboratories
Sartorius Stedim Biotech is a leading international partner for the biopharma sector. Our solutions are supporting our customers to develop and produce drugs safely, timely and economically. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions of complementary technologies.
Reasons to Invest in Sartorius Stedim Biotech S.A.
We focus on the attractive biopharmaceutical market characterized by long‑term and stable growth trends.
Key Growth Drivers
- Growing world population
- Increasing incomes and better access to healthcare services in emerging economies
- Aging population and rise in age-related diseases in industrialized countries
Medical progress is also fueling growth, resulting in the ongoing development and approval of new biopharmaceuticals and in the improvement or expansion of indications for already existing active pharmaceutical ingredients. Therefore, a growing number of biotech medications are being approved for treatment of rare diseases considered incurable until now, and innovative cell and gene therapies are projected to further drive growth in the biopharma sector.
Sartorius Stedim Biotech has leading market positions in core technologies and is continuously expanding its portfolio by new, complementary technologies that help our biopharma customers develop and manufacture medications faster and more easily. Our strength in selecting suitable partners or acquisition candidates is based upon our in-depth understanding of applications. We are thoroughly familiar with our customers’ requirements and their entire value-added chains, and particularly understand the interactivity of the systems they use. Our innovation strategy is based on three pillars:
- Integration of innovations through acquisitions
- Alliances with partners
- Own product development
Due to exceptionally strong organic growth, Sartorius Stedim Biotech invested considerably in building up production capacities in the reporting year. Capital expenditures totaled approximately €430 million in 2022 and were used to expand sites in Germany, France, Puerto Rico, the USA, South Korea, and China, among other countries.
North America and Asia are the key focal areas of the regional growth strategy. The USA is the world’s largest market for bioprocess equipment. Yet because it is home to the main competitors, Sartorius Stedim Biotech formerly had lower market share in this region than in Europe and Asia. By systematically strengthening its sales and service capacities, Sartorius Stedim Biotech has gained market share in the USA in recent years.
In Asia, one focus is on expanding production capacity in China, particularly for the Chinese market, which offers significant growth potential due to rising private and government health-care spending and the rapid establishment of regional biopharmaceutical plants. In South Korea, which offers excellent growth prospects with its dynamically expanding biopharma market, Sartorius Stedim Biotech started initial work to build a new production facility at the beginning of 2023.
The bioprocess technology market is characterized by relatively high entry barriers arising in part from the biopharmaceutical industry’s strong degree of regulation and its technological complexity.
Repeat business with sterile single-use products accounts for around three-quarters of the company’s sales revenue. These offer customers cost advantages, flexibility, and less resource usage, and thus a better ecological footprint compared with conventional processes employing reusable stainless-steel components.
The high share of recurring revenues is also bolstered by the strict regulatory requirements on the part of the customers. Because health authorities validate production processes as an integral part of an application for approval of a new medical drug, the components initially validated can be replaced only at considerable expense once they have been approved.
Beyond this, the company’s broad and stable customer base that is primarily addressed directly through a specialized sales force also contributes to this favorable risk profile.
Acquisitions that are complementary to or extend the company’s strengths appropriately have been and will remain part of our portfolio strategy. Due to high innovation dynamics, the company considers further additions to be possible on an ongoing basis across the entire breadth of the product portfolio.
- Complementarity of technologies to our existing portfolio
- Strong market positioning, for example, through innovative products with unique selling propositions
- Integration capability
- Appropriate valuation
- Growth and profitability profile
For many years, we have firmly embedded sustainability at many levels in our business. To us, it means operating responsibly and nurturing long term relationships – with respect to customers, employees, investors, business partners and society as a whole.
Key Financial Highlights
1 In constant currencies | 2 Underlying = excluding extraordinary items
2023 Outlook, Mid-Term Targets and Corporate Structure
Sartorius Stedim Biotech’s goal is to continue its profitable growth and systematically expand its position as a leading international partner for biopharmaceutical research and the industry. We are pursuing various strategic initiatives to grow sustainably up to 2025 – and beyond.
Following the exceptionally strong previous years, Sartorius Stedim Biotech expects further growth in 2023 despite demand normalization and anticipated further declines in the Covid-19-related business. Consolidated sales revenue is expected to increase by an amount in the low single-digit percentage range. Excluding the Covid-19-related business, the increase would be in the mid to high single-digit percentage range. Acquisitions are anticipated to contribute around 1 percentage point to growth. The Group’s underlying EBITDA margin should be around the level of the prior year (35.0 percent).
The company will continue its comprehensive capacity expansion program in 2023. The CAPEX ratio should be at roughly 12.5 percent and the ratio of net debt to underlying EBITDA at about 0.5. Possible acquisitions are not included in this projection.
All forecasts are based on constant currencies, as in the past years. In addition, management points out that the dynamics and volatilities in the life science and biopharma sectors have increased over the past years and the coronavirus pandemic has further amplified these trends. Moreover, the forecasts are based on the assumption of no deterioration in the geopolitical and global economic situation, supply chains, inflation and energy supply, and no new relevant restrictions in connection with the coronavirus pandemic. Accordingly, current forecasts show higher uncertainties than usual
Based on the unchanged strong fundamental growth trends in its markets and the resulting positive prospects for the company, Sartorius Stedim Biotech confirms its fundamental growth projections. In light of increased inflation and associated price adjustments, the company therefore is making a mathematical adjustment to its medium-term sales revenue forecast and now expects sales revenue of around 4.4 billion euros in 2025 (previously around 4 billion euros). Sartorius Stedim Biotech plans to achieve this sales revenue increase primarily through organic growth and additionally by acquisitions.
The forecast for the Group’s underlying EBITDA margin in 2025 remains unchanged at more than 35 percent. The margin target includes expenses of around 1 percent of Group sales revenue for measures to reduce the company‘s CO2 emission intensity.
All forecasts are based on constant currencies, as in the past years. In addition, management points out that the dynamics and volatilities in the life science and biopharma sectors have increased over the past years and the coronavirus pandemic has further amplified these trends. Moreover, the forecasts are based on the assumption of no deterioration in the geopolitical and global economic situation, supply chains, inflation and energy supply, and no new relevant restrictions in connection with the coronavirus pandemic. Accordingly, current forecasts show higher uncertainties than usual.
Sartorius Stedim Biotech is a globally operating company with subsidiaries in more than 25 countries and more than 11,900 employees worldwide. The parent company of the Sartorius Stedim Biotech Group is Sartorius Stedim Biotech S.A., headquartered in Aubagne, France.
Sartorius Stedim Biotech S.A. is listed on the Euronext stock exchange in Paris. Approximately 74% of the share capital and around 85% of the voting rights of Sartorius Stedim Biotech S.A. are held by Sartorius AG.
Sartorius AG is an international leading partner for life science research and the biopharmaceutical industry and is headquartered in Göttingen, Germany. It is listed on the German Stock Exchange and operates two divisions: the bioprocess business as a subgroup under its parent corporation Sartorius Stedim Biotech S.A., and the laboratory business as a further subgroup.
Below you will find the legal and operational structure of Sartorius AG, the parent company of Sartorius Stedim Biotech S.A.
Sartorius Stedim Biotech Group | FY 2022 Results
- Sales revenue of 3,493 million euros, in constant currencies up 13.2 percent organically and up 15.1 percent including acquisitions (reported: up 21.0 percent)
- Underlying EBITDA at 1,221 million euros, resulting margin at 35.0 percent
- As expected noticeable normalization of demand
- Outlook for 2023: Sales revenue growth in the low single-digit percentage range, excluding Covid-19-related business in the mid to high single-digit range; underlying EBITDA margin around prior-year level
- Uncertainties due to the global political and economic situation remain high
- Outlook for 2025 fundamentally confirmed, sales revenue target raised to around 4.4 billion euros due to inflation-based changes in price levels; profitability target unchanged at more than 35 percent
- Conference Call 9M|2022 Presentation PDF | 629.7 KB
- Conference Call H1|2022 Presentation PDF | 1012.9 KB
- Conference Call Q1|2022 Presentation PDF | 647.5 KB
- Conference Call FY|2021 Presentation PDF | 824.2 KB
- Conference Call 9M|2021 Presentation PDF | 388.4 KB
- Conference Call H1|2021 Presentation PDF | 670.7 KB
- Conference Call Q1|2021 Presentation PDF | 447.3 KB
- Conference Call FY|2020 Presentation PDF | 798.3 KB
- Conference Call 9M|2020 Presentation PDF | 503.2 KB
- Conference Call H1|2020 Presentation PDF | 437.8 KB
- Conference Call Q1|2020 Presentation PDF | 616.1 KB
- Conference Call FY|2019 Presentation PDF | 2.6 MB
- Conference Call 9M|2019 Presentation PDF | 2.4 MB
- Conference Call H1|2019 Presentation PDF | 392.4 KB
- Conference Call Q1|2019 Presentation PDF | 907.0 KB
- Conference Call FY|2018 Presentation PDF | 1.2 MB
- Conference Call 9M|2018 Presentation PDF | 1.0 MB
- Conference Call H1|2018 Presentation PDF | 1.1 MB
- Conference Call Q1|2018 Presentation PDF | 1.1 MB
- Conference Call FY|2017 Presentation PDF | 1.9 MB
- Conference Call 9M|2017 Presentation PDF | 1.1 MB
- Conference Call H1|2017 Presentation PDF | 1.4 MB
- Conference Call Q1|2017 Presentation PDF | 1.4 MB
- Conference Call FY|2016 Presentation PDF | 1.3 MB
- Conference Call 9M|2016 Presentation PDF | 1.3 MB
- Conference Call H1|2016 Presentation PDF | 1.4 MB
- Conference Call Q1|2016 Presentation PDF | 1.3 MB
- Conference Call FY|2015 Presentation PDF | 1.5 MB
- Conference Call 9M|2015 Presentation PDF | 688.1 KB
- Conference Call H1|2015 Presentation PDF | 1.3 MB
- Conference Call Q1|2015 Presentation PDF | 1.2 MB
- Conference Call FY|2014 Presentation PDF | 1.2 MB
- Conference Call 9M|2014 Presentation PDF | 1.1 MB
- Conference Call H1|2014 Presentation PDF | 992.6 KB
- Conference Call Q1|2014 Presentation PDF | 1001.1 KB
- Conference Call FY|2013 Presentation PDF | 841.8 KB
- Conference Call 9M|2013 Presentation PDF | 1.0 MB
- Conference Call H1|2013 Presentation PDF | 1002.8 KB
- Conference Call Q1|2013 Presentation PDF | 1011.9 KB
- Conference Call FY|2012 Presentation PDF | 946.8 KB